Can’t make your monthly car payments? Auto loan scammers are on the rise, and they are scheming to bait you into falling for their ‘too good to be true’ ads like “No credit, no income…we’ll finance you!”
Earlier this week we blogged about Saman Hasnain, a former beauty queen who scammed San Jose residents into paying her to modify their loans. She and her husband are now said to have fled to Pakistan after collecting an estimated $400,000.
“Now that the FTC has rules against companies advertising mortgage loan modifications and debt relief services, auto loans is one area of debt not covered by our rules,” said Malini Mithal of the Federal Trade Commission.
Hope for Car Owners and Auto Debt Consulting are two companies under FTC investigation for conducting faulty transactions with car owners by charging up-front fees for unprovided services and refusing to give refunds to customers despite advertising promises of debt relief and guaranteed services.
Scammers are posing as auto loan companies claiming to help reduce your monthly payments by negotiating with lenders for an up-front service fee. While you’re forking out the cash with the hopes of a solution, these companies are not following through with their promises. What can happen is they don’t contact your lenders, causing a chain reaction of you falling behind your payments, resulting in the repossession of your car.
To avoid falling victim to these auto loan scams, we at Scambook urge you to take precaution and work directly with your lender.
Have you or someone you know been scammed by a fraudulent auto loan company? Please submit your complaint here if you have.